Goolsbee Sees Economic Overheating in Data Center Buildout

Chicago Fed President Austan Goolsbee said Nov. 9 that data center investment shows signs of economic overheating, sharpening his concern about inflation despite relatively stable U.S. employment and growth.

Goolsbee described the expansion of data centers as resembling a traditional surge in demand. He also said services inflation is starting to rise, adding to his concern about price pressures beyond the data center buildout.

Consumer spending has been the main driver of growth, he said. He described employment and economic activity as relatively steady, while identifying inflation as the more serious problem facing the Fed.

Goolsbee urged the central bank to confront its failure to bring inflation under control. His remarks focused on data center investment and rising services inflation.